When it comes to old bad debt (2-6 years old), hospitals and healthcare systems typically choose between two options: selling the bad debt to opportunistic purchasers for 1 to 2 cents on the dollar or writing off the bad debt and abandoning any real recoveries.
That's because the financial health of many patients improves substantially over time-especially during periods of overall economic recovery, like that projected for the near future. Often, the most dramatic improvements occur years after the hospital debt has been written-off and forgotten.
Old bad debt that is loaded into the RSource Bad Debt Warehouse Platform is tested daily for positive changes in the patient's financial health and automatically re-energized when these changes are identified. RSource utilizes proprietary databases and algorithms that go beyond mere reliance on the traditional credit databases and information, flagging specific triggers that more accurately predict increased ability to pay. As a result, the overall recoveries from these bad debt placements are maximized over time.
Of course, for clients that desire accelerated liquidity from their old bad debt, RSource provides a more traditional Debt Purchasing program. To the extent RSource has had direct experience with a bad debt portfolio via the RSource Bad Debt Warehouse Platform, the valuation RSource can place on the portfolio will be that much more favorable to the client.